Shares of Yes Bank fell over 5 percent intraday on August 21, hitting their fresh 52-week low of Rs 67.55, following worries over the valuation of stake in Gautam Thapar's CG Power, which has been hit by allegations of financial irregularities.
The lender held 12.79 percent stake in CG Power and Industrial Solutions as of June 2019.
Shares of CG Power and Industrial Solutions remained on the course of free fall, plunging as much as 20 percent, to hit their fresh all-time low of Rs 11.80 on BSE on August 21.
As per media reports, the Ministry of Corporate Affairs (MCA) has ordered an inspection into the affairs of the company after reports of financial wrongdoings came into the light.
CG Power in a BSE filing on August 20 said, "While working on one of its priority tasks of seeking refinancing of certain facilities and as a part of conducting financial analysis in this regard, the operations committee was made aware of some unauthorised transactions by certain employees of the company."
The operations committee was also made aware of a letter received by the company from a financing company regarding a certain interest payment failure which the committee was unable to trace or ascertain from the financials of the company, the filing added.
The board also found that the total liabilities of the company and the group may have been potentially understated.
"The total liabilities of the company and the group may have been potentially understated by approximately Rs 1,053.54 crore and Rs 1,608.17 crore respectively as at 31 March 2018; and by Rs 601.83 crore and Rs 401.83 crore respectively as at 1 April 2017," the filing added.
Around 1040 hours, hares of Yes bank traded at Rs 69.45 on BSE, down Rs 1.80 or 2.53 percent.
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